Which of the following would be considered physical capital?
A) the cappuccino machine at the Garden of Eat'n Cafe
B) soy beans used to make soy milk
C) the skills and knowledge of a barber
D) the number of hours people spend in the gym

Question

Quizplus · Accepted Answer

Physical capital refers to the tangible assets that a company or individual possesses, such as machines, tools, buildings, and equipment. The cappuccino machine at the cafe is an example of physical capital.

Answer: B and C are not physical capital.
 Soy beans and skills and knowledge are not tangible assets and therefore not considered physical capital.

Answer: D is not a capital item.
 The number of hours people spend in the gym is not a tangible asset or investment, it's an abstract concept. Therefore, it is not considered physical capital.

Which of the Following Would Be Considered Physical Capital